A Firm That Has the Ability to Control to Some

question 68

Multiple Choice

A firm that has the ability to control to some degree the price of the product it sells

• A) is also able to dictate the quantity purchased.
• B) faces a demand curve that is inelastic throughout the range of market demand.
• C) is a price maker.
• D) faces a perfectly inelastic demand curve.

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Definitions:

Drawings

Withdrawals made by an owner from the business for personal use, reducing the capital account of the owner.

Capital Investment

Funds invested in a business by the owners or shareholders to purchase assets or to provide working capital with the aim of generating long-term revenue and profits.

Net Loss

The result when a company's total expenses exceed its total revenues during a specific period, indicating a negative financial performance.

Capital Balance

The amount of money invested in a business by its owners plus any retained earnings or minus any losses.